A debt collection company issued a CDO for operating without a license


On Nov. 3, the Massachusetts Banking Division issued a cease and desist directive to a formerly licensed debt collection company for allegedly operating for more than six years without a license. According to the order, the debt collection company was a foreign company doing business in Massachusetts with a primary address in Florida. According to records on file with the Division and the NMLS, the Commissioner originally issued a debt collection license to the company to conduct debt collection business in Massachusetts on or about January 14, 2010. . In December 2012, the debt collection license expired due to the company’s inability to respond to license items placed in the company’s NMLS account. In May 2013, the Debt Collector License was placed in “Terminated – Expired” status. During a review of a separate debt collection licensee, the Division learned that the company continued to engage in a now unlicensed debt collection business in Massachusetts on behalf of the licensee doing the subject of the examination. As a result, the Division ordered the company to immediately cease collecting debts on all Massachusetts accounts until it obtained the proper license to do so. The company has also been instructed to provide a complete record of all funds collected from Massachusetts consumers from January 2019 through November 3, 2022, as well as a detailed record of the Massachusetts accounts it holds for collection. The company can request a hearing to dispute the Division’s allegations and has 30 days from November 3 to request such a hearing. Failure to do so, or failure to appear at a scheduled hearing, will be deemed to have consented to the issuance of the Termination Direction.

Buckley LLP provides top-notch enforcement, litigation, compliance, regulatory and transactional services to early-stage and early-stage financial services institutions and fintech and technology companies, as well as to venture capital and private equity funds, investment companies and companies and individuals around the world.

Learn more at buckleyfirm.com and subscribe to our InfoBytes newsletter to get the latest news, events and developments affecting the financial services industry delivered to your inbox every week.


Comments are closed.